Location: Lowell, MA | Metro: Boston-Cambridge-Quincy, MA-NH HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,130 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,650 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,650 | $408,750 | 0.65% | D |
| 3BR | $3,180 | $580,293 | 0.55% | F |
| 4BR | $3,510 | $737,876 | 0.48% | F |
| 5BR | $4,072 | $767,820 | 0.53% | F |
U.S. Census Bureau data (2024)
2380 is the Fair Market Rent (FMR) for ZIP code 01463 in Pepperell, MA, for fiscal year 2024. 1301 is the actual market rent reported by the Census Bureau's American Community Survey, indicating that the FMR is significantly higher than what the market currently bears. 599891 is the median home value in this area, reflecting a stable housing market. However, only 15.8% of the population are renters, suggesting a smaller pool of potential tenants compared to areas with higher rental shares. 123911 is the median household income, which is an important factor for landlords considering the financial stability of their tenants. Despite the lack of specific data on days on market (DOM) and the percentage of homes with price cuts, the disparity between the FMR and market rent provides insight into the local rental landscape. For landlords and small-portfolio investors, the gap between the $2380 FMR and the $1301 market rent suggests that properties priced at the FMR may struggle to attract tenants. This analysis underscores the importance of pricing strategies that align with the actual market conditions rather than government-set guidelines. In conclusion, while the median home value and income levels support a healthy investment environment, the rental market dynamics in Pepperell, MA, indicate a need for careful consideration when setting rents. The verdict for Section 8 participation in ZIP 01463 is cautious, given the higher FMR compared to the actual market rent.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.